Following are the stages of Indian economic history:-
(a) Pre-colonial phase- India’ economy was extensively monetised in the late pre-colonial . While various kinds of non-market exchange systems such as the jajmani system did exist in many villages and regions, even during the pre-colonial * villages were incorporated into wider networks of exchange through which agricultural products and other goods circulated. There existed extensive and sophisticated trading networks. India was a major manufacturer and exporter of handloom cloth as well as the source of many other goods such as spices that were in great demand in the global market, especially in Europe. These traditional trading communities such as the Nakarattars also had their own banking and credit system called the Hundi.
(b) Colonial phase- under colonialism, there began ** of commercial money into local agrarian economies and the incorporation into wider trading networks that brought about ** social and economic changes in rural and urban areas. Land revenue was to be paid in cash; India’* handloom industry declined; India became a supplier of raw material and a market for cheap manufactured goods. New groups entered into trade and business, sometimes in alliance with existing merchant communities and in some cases by forcing them out. The market expansion provided new opportunities to some merchant communities, which were able to improve their position by re-orienting themselves to changing economic circumstances. New communities emerged to take advantage of the economic opportunities provided by colonialism and continued to hold economic power after independence.
(c) Post-independence phase- Marwaris were one such community that took advantage of the opportunities and became a successful business community. They accumulated wealth and with their extensive social networks that created relations of trust, they were able to establish themselves as moneylenders and bankers.
